Business

Tourism: Foreign Tourists Might Get Tax Refund On Indian Goods; Expert Says Beneficial For India

The tourism and exports industries have pushed for tax refunds to foreign tourists on goods being taken outside India. Popular destinations like the United Kingdom, UAE, and Singapore are on the lines of this provision. According to the experts, this will attract international travelers and encourage them to shop more in the country.

Section 15 Of IGST Act, 2017

Industry executives and experts said section 15 of the IGST Act, 2017 provides for the Tax Refund for Tourists scheme. However, it is yet to be implemented. The issue has been taken up collectively by industry associations ahead of the Union budget for 2023-24, said Jyoti Mayal, vice chairperson, Federation of Associations for Indian Tourism and Hospitality.

Experts On Tax Refund

The industry body’s consulting CEO Aashish Gupta said the tax refund scheme for tourists was kept in abeyance when goods and services tax (GST) was rolled out, on July 1, 2017, since back-end systems and the IT infrastructure needed to be enabled for its last-mile implementation.

“We understand that there is work going on around this. We have been taking it up with the tourism ministry as part of the budget proposal as well. This should be implemented,” the CEO added.

President of the Indian Associate of Tour Operator, Rajiv Mehra said that the association recently wrote to the finance ministry regarding the tax refund.

Mr. Mehra said, “It is in our budget recommendations and we have mentioned that this needs to be made available for all foreign tourists. The basic infrastructure needs to be worked out. Our proposal is very simple – the GST on shopping applied for foreign tourists should be given back to them. It’s there in the GST law and should be implemented now.”

The government should practice tax refunds for tourists. It give a boost to the tourism and lifestyle sectors of export, said the director general of Federation of Indian Export Organization, Ajay Sahai.

“Several countries including competing retail markets such as Singapore, China, Thailand and Dubai. They have already introduced similar VAT/GST refund schemes for tourists,” said Sahai.

Tax Refunds Will Increase Demands: Expert

Mr. Sahai said, “They are benefiting from increased sales and exports of local goods to international visitors due to the added incentive of tax refunds.”

“The merchants in many of these markets compete directly with Indian retailers. Across a broad cross-section of goods offered, such as jeweler, textiles and lifestyle products,” he said.

Also Read: Now layoff in India by Amazon and informing workers via email is on

Alina Khan

Recent Posts

PM Narendra Modi Meets Thaksin Shinawatra; Discusses Stronger India-Thailand Ties

During his Thailand visit, PM Narendra Modi met former Thai PM Thaksin Shinawatra & discussed…

14 mins ago

PM Modi Announces Sending Lord Buddha’s Relics To Thailand

PM Modi announced that India will send relics of Lord Buddha, discovered in Gujarat’s Aravalli…

14 hours ago

PM Modi Shares Highlights From Bangkok: A Vibrant Welcome, Community Connect, & The Ramayan!

Prime Minister Narendra Modi highlighted the deep cultural ties between India and Thailand during his…

14 hours ago

Judicial Strength At Risk, Says Delhi HC Bar Association On Justice Singh’s Transfer

The Delhi High Court Bar Association has raised concerns over Justice Chandra Dhari Singh’s transfer…

15 hours ago

PM Modi: Thailand Key To India’s ‘Act East’ Policy & Indo-Pacific Vision

Prime Minister Narendra Modi, during his visit to Bangkok, highlighted Thailand's strategic importance in India's…

15 hours ago

Thailand Releases Commemorative Stamp Showcasing 18th-Century Ramayan Murals During PM Modi’s Visit

Thailand unveiled a commemorative stamp featuring 18th-century Ramayan mural paintings, marking the first day of…

16 hours ago